XL Group Ltd

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XL : NYSE : Financial
$34.61 | %
Today's Range: 34.40 - 35.29
Avg. Daily Volume: 2,712,800
07/29/16 - 4:04 PM ET

Financial Analysis


XL GROUP LTD's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.58% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2634.242653.92
EBITDA ($mil)0.0714.2
EBIT ($mil)105.43695.76
Net Income ($mil)43.78915.04


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)3316.755927.86
Total Assets ($mil)61198.2461750.71
Total Debt ($mil)2646.322726.46
Equity ($mil)11685.1912247.3


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin4.026.91
EBITDA Margin0.026.91
Operating Margin4.026.22
Sales Turnover0.170.11
Return on Assets0.521.88
Return on Equity2.759.49
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.180.18
Interest Expense55.7449.67
Interest Coverage1.8914.01


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)276.77303.89
Div / share0.20.16
EPS0.153.11
Book value / share42.2240.3
Institutional Own % n/a n/a
Avg Daily Volume2798467.02167852.0

Valuation


HOLD. The current P/E ratio indicates a significant premium compared to an average of 16.55 for the Insurance industry and a premium compared to the S&P 500 average of 25.07. Conducting a second comparison, its price-to-book ratio of 0.78 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.55. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
XL 30.80 Peers 16.55   XL NA Peers 12.63

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

XL is trading at a significant premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
XL 9.17 Peers 14.83   XL NM Peers 1.66

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

XL is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

XL's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
XL 0.78 Peers 1.55   XL -73.59 Peers -11.43

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

XL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, XL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
XL 0.89 Peers 1.44   XL 46.70 Peers -2.26

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

XL is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

XL has a sales growth rate that significantly exceeds its peers.

 

 

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